Taiwan dollar closes at one-week high of NT$30.435 against US dollar

TAIPEI, Taiwan -- Taking a hint from the strong momentum of the Korean won and the influx of foreign funds, the Taiwan dollar on Monday closed at a one-week high against the U.S. dollar at NT$30.435.

The U.S. dollar fell against the Taiwan dollar Tuesday, shedding NT$0.075 to close at NT$30.435, as traders found encouragement to buy into the local currency on U.S. Federal Reserve Chair Janet Yellen's statement that the Fed will continue to support the U.S. economy for "some time to come," dealers told the Central News Agency (CNA).

The weakness of the U.S. dollar in the local foreign exchange market also reflected the strength of other regional currencies, including the Chinese yuan, boosted by better-than-expected manufacturing activity in China for March, they said.

Foreign institutional investors continued to pick up shares in the local market, adding downward pressure on the U.S. dollar throughout the session, CNA reported.

The U.S. dollar's losses were limited by efforts on the part of Taiwan's central bank, which sought to keep the currency above the NT$30.40 mark to prevent a rising Taiwan dollar from affecting the country's exports, they said.

The greenback opened at the day's high of NT$30.510 and moved to a low of NT$30.345 before rebounding. Turnover totaled US$703 million during the trading session.

The U.S. dollar opened flat but immediately fell to negative territory as Yellen's remarks prompted traders to believe that the Fed would continue to maintain ample liquidity, which could lend support to non-U.S. dollar currencies thanks to spill-over effects, dealers said.